What happened

Fisker (FSRN -12.70%) expects to ramp up deliveries to 300 vehicles per day by year's end, a big boost for a start-up that has delivered just 900 customer vehicles so far. Investors are excited about the acceleration, sending Fisker shares up 14% in Tuesday morning trading.

So what

Fisker is one of a number of electric vehicle start-ups bringing new designs to market in hopes of eating into Tesla's (TSLA -1.11%) impressive market share. Fisker's Ocean SUV boasts a range of up to 360 miles on a single charge, making it one of the longest-range electric SUVs on sale in the U.S. or Europe.

The company has seen a lot of interest in its vehicles, but that means nothing if it can't bring them to market.

On Tuesday, Fisker said it has now manufactured more than 5,000 Oceans to date and has delivered 900 to customers, with "several hundred" more expected to be delivered this week. The company expects to deliver at a pace of about 300 vehicles per day by later this year.

"We want to thank our customers for their patience as we have refined our delivery processes," chairman and CEO Henrik Fisker said. "As we complete the third quarter and move into the fourth, we are preparing to significantly increase our pace of deliveries in the US and Europe."

Now what

Shares of Fisker have lost more than 75% of their value over the past three years as investors have grown anxious about product delays and the massive expense of launching new vehicle brands. Ramping up deliveries of the Ocean should quell some of the nerves and provide a steady stream of cash.

Wall Street is taking notice. On Tuesday, Bank of America reinstated coverage of Fisker with a buy rating and assigned an $8 price target to the shares. The bank likes Fisker's lower-risk business model, which includes outsourcing the manufacture of vehicles to third-party partners, and is excited about Fisker's upcoming milestones.

In addition to increasing production of the Ocean, the company in August unveiled new models including a luxury car, a pickup truck, and a small, affordable vehicle.

Fisker still has a lot to prove, and it remains a speculative investment, but increasing production of the Ocean is an important step in the right direction, and investors are understandably enthused.